XBW Rumor: The Next Xbox Has A Wii U Like Tablet Controller With HD Screen, Buttons
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Thanks to TheOddOne for finding this.

Originally Posted by Xbox World Magazine

The next Xbox will be a matt-black media hub with a mission to bring games to life in your living room with augmented reality, directional sound, and a four-player finger-tracking Kinect. We told you all that last month. This month, our sources tell us it will have a touchscreen, too.

On 360 that touchscreen will be second only to Kinect in how you operate your console. It could be a remote control when you're watching TV, a browser when you're on the internet, extra buttons and information when playing a game or a portable display when you want to take your game with you.

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Expect to see the next Xbox at E3 this June.

Source: It's in the magazine. There's a bit more to the article, but it's just speculation that this sounds rather expensive.

Anyone who thought this wasn't the case was living in la-la land IMO. Will be interesting to see if it is true, but a tablet controller was clearly the next logical step for home consoles. Whether it was Nintendo that sparked the move or Microsoft's internal R&D...who knows? All I know is it makes a hell of a lot of sense for all manufacturers.

If the controller kept the form of the 360 controller i would be ok with it just with a VMU style screen in the middle of it.

Yeah, if we basically replace the 360 button and move start/select, that would be an interesting design. What I get the feeling we're going to get is a Vita as a controller, with cameras all over the place.